Slide 1: FY 2016 Results Presentation
FY 2016 Results Presentation 16 January 2017
Slide 2: Important Information
2 Important Information Disclaimer The material in this presentation is general background information about the activities of Emirates NBD Bank PJSC (Emirates NBD), current at the date of this presentation, and believed by Emirates NBD to be accurate and true. It is information given in summary for
Slide 3: Emirates NBD delivered a solid set of results in 2016 amid a challenging environment
3 Emirates NBD delivered a solid set of results in 2016 amid a challenging environment FY 2016 at a glance 2016 Macro themes FY 2015 FY 2016 vs. 2016 Regional Global Guidance • Resilience of UAE • Strong stock market Profitability Net profit AED 7.1 Bn AED 7.2 Bn economy due to performance and non-o
Slide 4: FY 2016 Financial Results
4 FY 2016 Financial Results Highlights Key Performance Indicators Better / • Net profit of AED 7,239 million for FY-16 improved AED Mn FY-16 FY-15 (Worse) 2% y-o-y Net interest income 10,111 10,241 (1%) • Net interest income decreased 1% y-o-y as NIM Non-interest income 4,637 4,987 (7%) contraction
Slide 5: Q4-16 Financial Results Highlights
5 Q4-16 Financial Results Highlights Highlights Key Performance Indicators Better / Better / • Net profit of AED 1,857 million for Q4-16 declined AED Mn Q4-16 Q4-15 Q3-16 (Worse) (Worse) 13% y-o-y and increased 12% q-o-q Net interest income 2,460 2,669 (8%) 2,551 (4%) • Net interest income declined
Slide 6: Net Interest Income
6 Net Interest Income Highlights Net Interest Margin (%) • NIMs declined to 2.51% in 2016 and to 2.29% in Q4-16 2.95 2.91 2.90 • Loan yields declined 4 bps y-o-y and 8 bps q-o-q as margins 2.83 2.85 2.83 2.80 2.85 declined due to competitive pressures 2.78 2.77 2.90 • Deposit costs reduced margins b
Slide 7: Loan and Deposit Trends
7 Loan and Deposit Trends Highlights Trend in Gross Loans by Type (AED Bn) +7% • Gross loans grew 7% since end 2015 with good growth in Consumer and 310 314 315 0% 303 294 Islamic lending 279 285 272 267 271 221 225 226 227 209 215 • Islamic financing grew 8% since end 2015 due to growth in retail,
Slide 8: Funding and Liquidity
8 Funding and Liquidity Highlights Advances to Deposit (AD) Ratio (%) • AD ratio of 93.4% within 90-100% management target range 99.2 • Liquid assets* of AED 57.2 Bn as at end 2016 (14.5% of total 97.2 liabilities) 96.1 95.6 95.6 95.9 95.2 • Debt & Sukuk term funding represent 12% of total liabiliti
Slide 9: Capital Adequacy
9 Capital Adequacy Highlights Capitalisation 20.7 20.3 20.5 20.5 21.2 • In Q4-16, Tier 1 ratio increased by 0.7% to 18.7% and CAR increased by 0.7% to 21.2% 18.0 17.6 17.9 18.0 18.7 • Increase in Tier 1 ratio on the back of higher Tier 1 capital 53.5 54.4 50.9 50.2 51.8 from retained earnings, coupl
Slide 10: Non-Interest Income
10 Non-Interest Income Highlights Composition of Non Interest Income (AED Mn) Better / • Non-interest income declined 7% y-o-y AED Mn FY-16 FY-15 (Worse) • Core gross fee income declined 11% q-o-q but Core gross fee income 4,889 4,897 (0%) remained flat y-o-y despite one-off impact in Q4 from Egypti
Slide 11: Operating Costs and Efficiency
11 Operating Costs and Efficiency Highlights Cost to Income Ratio (%) • In Q4-16, costs improved by 2% q-o-q, 34.5 33.7 helped by a further reduction in staff costs, 33.3 following cost control measures 32.6 implemented earlier in 2016 32.0 33.1 32.7 • Costs increased by 4% y-o-y on the back 31.0 32
Slide 12: Credit Quality
12 Credit Quality Highlights Impaired Loan & Coverage Ratios (%) • NPL ratio improved by 0.7% in 2016 to 6.4% 118.5 120.8 120.1 114.5 111.5 113.5 109.0 • Impaired loans improved to AED 20.3 Bn during the year 99.6 103.2 helped by AED 3,071 Mn of write backs & recoveries in 2016 7.9 • 2016 cost of ri
Slide 13: Divisional Performance: Retail Banking & Wealth Management
13 Divisional Performance • RBWM revenues increased 8% y-o-y Balance Sheet Trends Revenue Trends • In FY-16, fee income accounted for 39% of total RBWM AED Bn AED Mn revenue, compared to 30% in 2013 +25% +8% Wealth Management • Loans grew by 14% across a range of products +14% Retail Banking & inclu
Slide 14: Divisional Performance (cont'd): Wholesale Banking
14 Divisional Performance (cont’d) • Wholesale Banking revenues declined 13% y-o-y Balance Sheet Trends Revenue Trends primarily due to a realignment in internal transfer pricing AED Bn -6% AED Mn • Loans grew 5% from end 2015 +5% -13% • Deposits declined 6% from end 2015, reflecting Wholesale Banki
Slide 15: Outlook
15 Outlook FY 2017 guidance 2017 Macro themes FY 2017 vs. Regional Global FY 2016 • Resilience of UAE • Emirates NBD’s economy due to balance sheet Profitability Net interest margin 2.35 – 2.45% 2.51% Expo2020 related positioned to benefit infrastructure from rising interest spend rates Opportunity
Slide 16: Investor Relations
Investor Relations PO Box 777 Emirates NBD Head Office, 4th Floor Dubai, UAE Tel: +971 4 201 2606 Email: IR@emiratesnbd.com